Considering a Personal Loan for Debt Consolidation?

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If you’re considering a personal loan for debt consolidation, you will want to make sure that you compare multiple personal loans before applying and you’ll also want to make sure that your new monthly payment is affordable and saves you money on interest rates after you consolidate your debt with a personal. The following information about using a personal loan for debt consolidation is for informational purposes only and should not be taken as financial advice.*

Personal Loans for Debt Consolidation: Items to Consider

When using personal loans for debt consolidation, you will want to make a list of all the debts that you will be consolidating. These could include but are not limited to credit card debt, medical debt, and other secured or unsecured debt, such as car loans, installment loans, credit lines, and more. Once you list all the debt that you will be consolidating, you will want to list your monthly payments, months left to pay on debt (terms), the amounts of each debt, and the monthly payments you have been making. If you’re paying many minimum monthly payments on credit cards, you may find that using a personal loan to consolidate credit card debt will force you to pay them off in a certain period of time (e.g. three-five years), by rolling multiple credit cards into a personal loan with a fixed rate and term.* You always need to check with each and every personal loan lender to make sure that the personal loan uses a fixed interest rate for a fixed period of time (e.g. 24-84 months).

Once you’ve compiled this list of data, you’ll want to compare personal loans using a personal loan comparison service or by visiting multiple banks and credit unions in order to see which personal loans you may qualify for and what interest rates they’re offering along with what amounts they offer and the terms of the personal loans that they offer. Once you know the amount, terms (months or years to pay off), and the interest rate, you can get a good idea of what you’re new monthly payment would be if you rolled some or all your current debts into a personal loan. If you decide to move forward and use a personal loan for debt consolidation, you’ll want to make sure that this new monthly payment will be something you can afford to pay every month and will repay in full AND that you will save money in the long-term if not also in your monthly payment.

If you are considering a personal loan for debt consolidation, feel free to check out our free personal loan comparison page, where you can compare personal loans for debt consolidation and other purposes.

Company

Ratings*

Sofi Personal Loans

*Not available in MS.

UpGrade Personal Loans

*Unavailable in DC.

Payoff Personal Loans

*Not offered in: MA and NV.

UpStart Personal Loans

Prosper Personal Loans

SuperMoney Aggregator

Universal Credit

*Unavailable in DC and IA.

Axos Bank Personal Loans

Monevo Personal Loans

*Image above and button on right link to customized personal loan offer form.